Benefits of Investing in the CBD Industry
The CBD industry has taken the world by storm, thanks to a combination of factors including a growing interest in alternative medicine, new changes in cannabis law and a recent wave of CBD-oriented clinical studies. Americans can finally access this plant-based cannabinoid in order to try to treat their ailments in a natural and holistic way. The majority of users are experiencing incredible results when you consider how massively profitable the CBD industry has become.
You really can’t go wrong by investing in the cannabis market right now. Leading financial experts are certain that the industry will only continue to grow astronomically in the coming years, making it a very safe and profitable investment.
After reading through this article, you’ll see there are several reasons that the CBD market is worth investing in. You’ll also see that it’s a fairly simple market to invest in, due to how new it is.
First, let’s get into the basics of CBD. Those unfamiliar with this compound tend to lump it into the same category as marijuana. While CBD and THC are both derived from the cannabis plant, they are two individually different things.
CBD is a compound known as cannabidiol, which is derived from the hemp plant. You can think of the hemp plant as a cousin of the marijuana plant. Hemp is naturally high in CBD, but very low in THC, which is the cannabinoid that is psychoactive, and therefore gives marijuana its ability to make people high. In hemp, you’ll find only about 0.3 percent THC, not enough to produce any psychoactive effects. The marijuana plant, conversely, is very high in THC.
CBD has been heavily researched over recent years because of the many unique positive effects it can have on a person’s health. Up until a few years ago, cannabis was outlawed completely, meaning that people couldn’t access CBD, nor could scientists study it. Now, thanks to the fact that hemp is legal to cultivate, people can legally use it in an effort to treat their symptoms.
As of now, studies have shown that CBD has proven effective to treat common ailments like anxiety, chronic pain, digestive issues, immune issues, skin problems and more. This is because our bodies have an system that naturally distributes cannabinoids throughout the body in order to create a state of homeostasis.
How Many People Are Using Cannabis These Days, Anyway?
There are about 55 million adults using cannabis regularly in the United States. 55 million is a pretty high number considering the fact that there are 327 million American citizens. The majority of these users use cannabis at least on a weekly basis, proving CBD is a booming industry, showing no signs of slowing down.
One of the reasons why so many Americans are avid users is due to the fact that it actually works. The natural health market is known for spitting out fad “cure-alls” that leave a lot to be desired. CBD is unique, however, in that it works with the endocannabinoid system to regulate bodily processes. In other words, the notion that CBD can treat a wide range of ailments at once is strongly backed by clinical research.
What This Means for the CBD Market
As you can see, the CBD market is doing very well, to say the least. With 55 million Americans happily investing in cannabis products regularly, the market can really only grow from here. The market is actually expanding rapidly as we speak, meaning that the potential for profits is pretty phenomenal. Currently, the global CBD market is valued at $22 million, while the American cannabis market is valued at $11.3 billion. Amazingly, it’s projected to reach $146 billion by 2025. The compound annual growth rate (CAGR) is 25 percent by 2025.
As the CBD market continues to expand, an increasing number of companies are creating lines of hemp-based products, and the hemp industry itself is expanding agriculturally. In fact, legislation passed in the past year has made it easier than ever for hemp farmers to profit off of their product. Profits for these same hemp farmers trickle down to companies, which in turn benefits investors.
The future looks bright for the industry, especially when you consider the fact that massive industries of the United States are showing interest in utilizing this compound as well. Pharmaceutical companies are currently researching cannabidiol in order to incorporate it into their highly profitable products. Even highly established retail brands are finding ways to build product lines around CBD.
The CBD market has been expanding consistently for a long enough time that it can no longer be ignored as a passing trend. It’s clear that there’s something unique about the benefits of this hemp-based compound, and it may change the retail, medical, pharmaceutical, beauty, wellness and food industries as we know them.
Celebrity Endorsements and Product Lines
CBD’s rise to fame can be partially attributed to the fact that many celebrities quickly became advocates for the plant-based compound. We all know the undeniable effect that high-profile stars have on the market, and many of them have come together to endorse CBD. A-listers like Kim Kardashian, Seth Rogen, Jennifer Aniston, Olivia Wilde and Whoopi Goldberg have been outspoken about the ways in which CBD has helped them with their ailments. Meanwhile, high-profile celebrities like Mike Tyson, Dan Bilzerian and Rob Gronkowski have developed CBD product lines of their own, using their names to sell hemp-based products to the masses.
A Submarket for Pets
The CBD industry has many submarkets, and one of the more interesting ones is pet products. Now that research has shown that all mammals’ bodies respond to CBD in the same way, the veterinary industry is embracing hemp as a natural way to treat pet-related issues like stress, arthritis and lethargy. The CBD pet market, like the rest of the CBD industry, is expected to expand rapidly in the coming years thanks to the fact that more research has shown positive results when administered to cats and dogs, and also because veterinarians themselves are beginning to recommend CBD to pet owner.
Should You Invest in CBD?
By now, you should be feeling excited about the idea of investing in CBD. It is widely considered one of the safest, most profitable investments that you can make right now due to unanimous, optimistic projections that have been made over the past year. There are infinite up-and-coming companies that have the undivided attention of major investors, so it’s not difficult to find a business worthy of your investment.
If you are a regular CBD user, investing in the cannabis market is actually a great way of introducing yourself to the investment game. Because it’s something that you’re familiar with, you’ll feel more personally attached to it, and won’t feel nearly as intimidated to invest as in other industries, because of your familiarity with the market.
If you feel that you’re ready to take the leap, you can easily discover which brands are projected to be the most profitable over the next year or two by doing a little bit of research online. Always remember, caveat emptor. Investing is always a risk, even with an industry that’s is doing so incredibly well. Make sure the business you’d like to make money with is legitimate by doing your research before spending it! Choose wisely, and you could see a huge return.
The CBD Market Is Here to Stay
As financial experts project huge advancement happening in the next couple years, and as more and more people find that it really benefits them. Even if you’re not an regular CBD user, investing in the market can benefit you tremendously. Few industries are expected to grow as much in the next couple years, and ones like this don’t come around too often.